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Discussion in 'General Appraisal Discussion' started by jay trotta, Nov 2, 2009.

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  1. jay trotta

    jay trotta Elite Member

    18
    Feb 8, 2004
    Professional Status:
    Certified Residential Appraiser
    State:
    Connecticut
    While skimming thru some Banking news today, I found this article and thought is was worth providing;

    "Hopefully, none of the homes auctioned on the weekend in Barrington, Illinois required an FHA-backed mortgage: the bids started at one dollar. The sleeper town is located 30 miles from Chicago and some of the homes are being released by the city in order to prevent demolition. According to the local NBC affiliate, Barrington hopes the homes could be refurbished to historic charm, but the town’s citizens were not convinced. Nor were investors. Or anyone else.

    No one placed a bid and not a single house sold."


    somedays ya just can't Sell anything, no matter the price - just wondering if the "Land" in that area is worth.......$1.00
     
  2. Mike Garrett RAA

    Mike Garrett RAA Elite Member

    36
    Jan 14, 2002
    Professional Status:
    Certified Residential Appraiser
    State:
    Colorado
    Interesting thought! What is the cost of clearing the land? How much are the taxes?
     
  3. Lobo Fan

    Lobo Fan Elite Member

    0
    Nov 28, 2004
    Professional Status:
    Certified Residential Appraiser
    State:
    New Mexico
    I wonder if there were any haz mat concerns? Asbestos, lead paint, etc. I am sure that this was due to out of town appraisers undervaluing purchase appraisals.
     
  4. Restrain

    Restrain Elite Member

    41
    Jan 22, 2002
    Professional Status:
    Certified General Appraiser
    State:
    Florida
    Cost of acquisition plus cost of renovation greatly exceeding cost to purchase a livable, competing property. Plus, you've probably got 2-3 years of taxes and penalties. Liability probably greatly exceeded return.
     
  5. Metamorphic

    Metamorphic Senior Member
    Gold Supporting Member

    59
    Mar 15, 2008
    Professional Status:
    Certified Residential Appraiser
    State:
    California
    Can you submit a negative bid?
     
  6. leelansford

    leelansford Elite Member

    45
    Mar 29, 2002
    Professional Status:
    Certified Residential Appraiser
    State:
    Illinois
    Barrington is a "big $$" community and land, in general, is NOT cheap. Barrington is NOT "Detroit".

    I suspect that in this particular situation, we're missing some important details :).
     
  7. Ray Miller

    Ray Miller Elite Member

    0
    Feb 20, 2002
    Professional Status:
    Licensed Appraiser
    State:
    Wisconsin
    Something not right. Like has been said, big big dollar area.

    Just south is Barrington Hills, Ill. Super big buck area.

    Bobbie and I do many equine clinics and sold many high end saddles in the area every year. Not uncommon for a person to have a $1M horse barn on thier property with a $10M home.
     
  8. Obsolescent

    Obsolescent Senior Member

    20
    Jul 6, 2004
    Professional Status:
    Certified Residential Appraiser
    State:
    Illinois
    The important detail is that they were historic homes or older homes preservationists wanted to keep. The bids were to start at $1 but the buyer had to incur all expenses to MOVE the home somewhere else.

    http://www.dailyherald.com/story/?id=332461&src=13
     
    Last edited: Nov 2, 2009
  9. Ray Miller

    Ray Miller Elite Member

    0
    Feb 20, 2002
    Professional Status:
    Licensed Appraiser
    State:
    Wisconsin

    Just a few extra thousand dollars to move it and few extra thousands dollars for a lot.

    In todays world those preservationists are living in a dream world.:shrug:
     
  10. jay trotta

    jay trotta Elite Member

    18
    Feb 8, 2004
    Professional Status:
    Certified Residential Appraiser
    State:
    Connecticut
    Oh my, how things change with a little more info. - sorta like the appraisal field....heh, heh

    To bad the first article forgot to mention the "Move" / the "Time Line" involved, perhaps the MOST important factors noted.

    The real question is; how much Value is there in this type of scenerio, when the Total Costs will most definitely outweigh the end result. Interesting, but not in this market and can't tell to much about the houses, but they don't appear to be "pre-1900" - not exciting to me.

    Anyway, it was a little different fun for a Monday.....
     
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